Gold prices gain as dollar declines due to hope for US stimulus

Gulf Today Report 

Gold advanced on Thursday its highest in two weeks following a decline in US dollar on hope for more stimulus as Joe Biden gets inaugurated.

Spot gold was up 0.1% at $1,873.36 per ounce while US gold futures gained 0.3% to $1,871.70. Bullion had gained 1.7% on Wednesday.

DailyFX strategist Margaret Yang said, "gold has some more upside in the slightly longer horizon, given that global central banks are likely to stay dovish for an extended period of time." 

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Investors are keenly paying attention to Biden’s $1.9 trillion stimulus plan as he gets ready to jump-start his response to the pandemic.

According to Yang, "the virus mutation is a big wild card and if vaccine development, manufacturing and rollout can't catch up to the pace of the mutation, the pandemic could last much longer than we'd previously thought."

Gold serves as a shield against inflation that can happen from all the stimulus measures injected into the economy.